Trump's latest tariffs on eight European countries over their troop deployments to Greenland could potentially derail the EU-US trade pact. This comes as a surprise, given the recent EU-US trade truce aimed at easing transatlantic tensions. The EU-US deal, which was struck last summer, involved Brussels accepting a flat 15% tariff across most sectors in exchange for commitments to lower EU duties on US industrial and agricultural goods. However, the new tariffs, which will be imposed on Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and the UK, starting February 1st and rising to 25% by June 1st, threaten to unravel this hard-fought agreement. The tariffs are due to be paid until a deal is reached for the complete and total purchase of Greenland, a Danish autonomous territory that Trump has repeatedly expressed interest in acquiring, even suggesting the use of force. This has sparked protests in Denmark and Greenland, with thousands taking to the streets to demonstrate against Trump's push to take control of the world's largest island. The EU's response to these tariffs is crucial. German MEP Bernd Lange suggests halting the implementation of the US deal and using the Anti-Coercion Instrument (ACI), a 'trade bazooka' designed to counter political pressure. Swedish MEP Karin Karlsbro agrees, warning that the EU must respond to Trump's 'tariff attacks' and that retaliatory tariffs or the use of the trade 'bazooka' cannot be ruled out. The EU's stance on market openness and territorial integrity will be tested, and the outcome could significantly impact the EU-US trade relationship.
